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Mobility and the Role of Education as a Commitment Device

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  • Thum, Claudio
  • Uebelmesser, Silke

Abstract

In closed economies, human capital investment faces a hold-up problem of excessive redistributive taxation. Increased international labor mobility, however, changes the constraints which affect optimal education and tax policy. We show that in a non-altruistic, gerontocratic world, investments in human capital which increase the mobility of the young generation can be interpreted as a commitment device overcoming the hold-up problem. This is in line with Kehoe (1989) who derives a similar result with respect to capital mobility. Copyright 2003 by Kluwer Academic Publishers

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  • Thum, Claudio & Uebelmesser, Silke, 2003. "Mobility and the Role of Education as a Commitment Device," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(5), pages 549-564, September.
    • Handle: RePEc:kap:itaxpf:v:10:y:2003:i:5:p:549-64
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    1. Andersson, Fredrik & Konrad, Kai A., 2002. "Taxation and education investment in the tertiary sector [Besteuerung und Bildungsinvestitionen im tertiären Sektor]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-17, WZB Berlin Social Science Center.
    2. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2014. "Financing Higher Education in a Mobile World," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(3), pages 343-371, June.
    3. Silke Uebelmesser, 2004. "Harmonisation of Old-age Security Within the European Union," CESifo Economic Studies, CESifo Group, vol. 50(4), pages 717-743.
    4. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2008. "Financing Higher Education and Labor Mobility," CESifo Working Paper Series 2362, CESifo.
    5. Panu Poutvaara, 2003. "Educating Europe," Public Economics 0302008, University Library of Munich, Germany.
    6. Amrita Kulka & Till Nikolka & Panu Poutvaaraifo & Silke Uebelmesser, 2025. "International applicability of education and migration aspirations," Journal of Economic Geography, Oxford University Press, vol. 25(1), pages 127-147.
    7. Alexander Haupt & Eckhard Janeba, 2009. "Education, redistribution and the threat of brain drain," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(1), pages 1-24, February.
    8. Wildasin, David, 2014. "Human Capital Mobility: Implications for Efficiency, Income Distribution, and Policy," IZA Discussion Papers 8199, IZA Network @ LISER.
    9. Gabrielle Demange, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 248-276, June.
    10. Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," CESifo Working Paper Series 1369, CESifo.
    11. Nikos Benos, 2005. "Education Systems, Growth and Welfare," University of Cyprus Working Papers in Economics 5-2005, University of Cyprus Department of Economics.
    12. Panu Poutvaara, 2004. "Public Education in an Integrated Europe: Studying for Migration and Teaching for Staying?," Public Economics 0406006, University Library of Munich, Germany.
    13. Panu Poutvaara, 2008. "Public and Private Education in an Integrated Europe: Studying to Migrate and Teaching to Stay?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(3), pages 591-608, September.
    14. Silke Übelmesser & Marcel Gérard, 2014. "Financing Higher Education when Students and Graduates are Internationally Mobile," Jena Economics Research Papers 2014-009, Friedrich-Schiller-University Jena.
    15. Poutvaara, Panu, 2011. "The expansion of higher education and time-consistent taxation," European Journal of Political Economy, Elsevier, vol. 27(2), pages 257-267, June.
    16. Nikos Benos, 2004. "Education Policies and Economic Growth," University of Cyprus Working Papers in Economics 4-2004, University of Cyprus Department of Economics.
    17. David Wildasin, 2008. "Public Finance in an Era of Global Demographic Change: Fertility Busts, Migration Booms, and Public Policy," Working Papers 2008-02, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
    18. Alexander Haupt & Silke Uebelmesser, 2009. "Voting on Labour-Market Integration and Education Policy when Citizens Differ in Mobility and Ability," CESifo Working Paper Series 2588, CESifo.

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